Disney has taken a huge hit due to the Covid-19 Pandemic. Due to the closure of their parks the company has been banking heavily on Disney+, but according to analysts their streaming numbers are dropping. Disney+ Content and subscribers will likely take a hit next.

The information was posted a couple weeks ago by analysts from MoffettNathanson. Then it was reported by FastCompany.com.

According to the analysts the percentage of viewers streaming and using Disney+ daily has declined for two straight quarters according to data from HarrisX.

During the third quarter the frim says that only 26% of viewers utilized Disney+ daily. That was a decrease of “300 basis points from the prior quarter, which itself was down 200 basis points from the quarter before that.

For comparison, 43% of Netflix viewers said they used the service daily in the third quarter, about the same number who said so in the prior quarter.“

Subscribers have Disney+ but they aren’t watching it as much.

Throw in the lack of high demand content and the pandemic stalling out the creation of high demand content, along with free subscriptions running out, it could be another drop for Disney.

Last year when Disney+ launched, companies like Verizon, were offering a year of the streaming service for free. Disney keep touting the 60 million subscriber number, but a large part of it are those who were just given it for free. They have already started another promotion for a bundle with Disney+, Hulu and ESPN+ with some Verizon Unlimited plans.

60 million subscribers sounds great, till you notice that not all of them are paid subscriptions.

Then there’s the lack of high demand content. Disney has been bringing “new” content with some smaller demand films and shows, or old content they’ve added. However, since ‘Hamilton’ they haven’t really brought anything that drove up usage much. Of course ‘The Mandalorian’ Season 2 will likely change that trend, but Disney needs to get some of their other high demand offerings up on the platform and keep the anticipated new content coming, if they want to keep the usage and subscriber growth, or at least stabilize it.

It will be interesting to see what happens moving forward. I really doubt Disney will say anything at the next Investor Call about the declining usage. Instead they will try to razzle dazzle with the latest subscriber numbers and their new “Star” platform coming overseas.

What do you think? Comment and let us know.

Source: FastCompany.com